Colony Financial Inc. has sold $55.7 million worth of common stock to institutional investors. Proceeds will be used to repay debt and for general corporate purposes.

The Santa Monica real estate investment trust, which has nearly 17.4 million shares outstanding, on Tuesday said 2.75 million shares were sold at $20.25 apiece, a 1.7 percent premium to Monday’s closing price.

Colony Financial, a subsidiary of billionaire Thomas J. Barrack Jr.’s private real estate investment firm, Colony Capital LLC, also declared a special dividend of 5 cents per share. The dividend, to be paid Jan. 14 to stockholders of record as of Dec. 31, will distribute the balance of the REIT’s estimated taxable income for this year.

Shares were up 14 cents, or less than a percent, to $20.05 in midday trading on the New York Stock Exchange.